What are the prospects for pig farming? 2017 market analysis

The 2017 No. 1 Central Document proposed carrying out structural reform of the agricultural supply side, which in the final analysis is to meet people's new demand for higher-quality and safer agricultural products. The adjustment of the pig farming industry's structure is directly tied to whether ordinary people can eat pork on their tables with confidence, and this also forces the pig farming industry to keep improving. Let us take a look below at what the prospects for pig farming in 2017 are like!

What are the prospects for pig farming in 2017?

2016 was the strictest year in history for the ban-on-raising policy, with the designation of no-raising zones and the demolition of pig farms running through the entire year. The ban-on-raising policy dealt a great impact on the development of the pig farming industry, and many pig farmers withdrew from pig farming as a result. In 2017 the ban-on-raising policy will be even stricter, and final notices have already been issued: pig farms designated as being in no-raising zones must be completely closed or demolished by the end of the year. In the future more pig farms will be forced to close, which will continue to affect the number of live pigs kept, and the live pigs supplied to the market will decrease, so pig prices in 2017 will still remain at a relatively high point.

Reasons for the sustained high prices of live pigs

1. The pig farming loss cycle of the previous two years was too long; some pig farms had already lost so much that their debts exceeded their assets, and a huge gap also appeared in market supply, which caused a sharp drop in live pig output.

2. Because of environmental protection issues the government shut down some pig farms, and together with the directives from government departments on no-raising zones and restricted-raising zones, building pig farms is no longer as casual as in previous years, and expanding live pig production is restricted.

3. Feed prices fell by a relatively large margin compared with the previous period, which also directly affects pig farming profitability.

How can you make money raising pigs in 2017?

1. Scale farming: China is the world's largest country in both live pig farming and consumption. Statistics show that in 2015, scale farms with an annual slaughter of more than 500 pigs accounted for 44 of live pig slaughter. Through large-scale, intensive production, the food safety of livestock products can be thoroughly resolved. At the same time, attention must be paid to building a standard system for breeding pigs and to establishing and improving operating standards and monitoring systems, so that fine breeds can be raised well and fine techniques can be promoted well.

2. Ecological farming: the 2017 No. 1 Central Document proposed developing large-scale, efficient farming, optimizing the regional layout of live pig farming in the water-network areas of the south, and guiding production capacity to shift to areas with large environmental capacity and to major corn-producing areas. It also called for vigorously promoting efficient, ecologically circular planting-and-raising models and accelerating the centralized treatment of livestock and poultry manure. It can be seen that green ecological farming is an important direction for the structural adjustment of the livestock industry, and achieving ecological farming requires technological innovation and promotion.